What is the cure period afforded to a Buona franchisee before termination for ceasing to operate the business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 Thirty-Day Cure Period. Except as provided in Sections 16.1, 16.2 and 16.3 of this Agreement, Franchisor shall have the right to terminate this Agreement if Franchisee commits any of the following breaches and fails to cure the same within thirty (30) days following Franchisor's written notice to Franchisee:
- (a) Franchisee fails or refuses to maintain and operate its Franchised Business in compliance with this Agreement, the System and the Manual (other than in a manner that constitutes a default of Sections 16.1, 16.2 or 16.3 for which those sections are controlling), including, but not limited to failing to complete a Franchised Business Renovation, within the time frame required by this Agreement, at Franchisee's expense; or
- (b) Franchisee fails to comply with any other term or condition in this Agreement not specifically listed in Sections 16.1, 16.2, or 16.3 above.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the standard cure period for most breaches of the franchise agreement is thirty days. Specifically, if a Buona franchisee fails or refuses to maintain and operate their franchised business in compliance with the agreement, the system, and the manual, and this failure doesn't fall under the categories with shorter cure periods, they have thirty days to correct the issue after receiving written notice from Buona. This also applies if the franchisee fails to comply with any other term or condition in the agreement not specifically listed in sections with different cure periods.
However, there are exceptions to this thirty-day cure period. For instance, if the default involves failing to pay any money owed to Buona, failing to pay for products or supplies, or failing to submit required reports, the cure period is only five days following written notice. Additionally, certain events, such as insolvency, can lead to immediate termination without any notice or cure period.
It's important for a prospective Buona franchisee to understand these different cure periods, as failing to meet them can result in the termination of their franchise agreement. Franchisees should carefully review the franchise agreement and manual to ensure they are aware of all their obligations and the consequences of failing to meet them. They should also be aware of the specific conditions that could lead to immediate termination without a cure period.